News in brief:
– A proposed $780 million US acquisition of one of Australia’s largest agricultural portfolios has collapsed due to market volatility and cross-border investment risks.
– The 225,405-hectare AFA-owned portfolio is now back on the market, with plans to sell it as a whole through an advisory firm.
One of Australia’s largest and most diversified agricultural portfolios is back on the market after a proposed $780 million acquisition fell through due to equity market volatility.
The portfolio, owned by Australian Food & Agriculture Co. (AFA), spans 225,405 hectares across New South Wales and includes extensive cropping and livestock operations.
In 2023, AFA announced plans to sell its 13 farms, aiming to raise around $700 million. A year later, US-based Agriculture & Natural Solutions Acquisition Corporation (ANSC), a NASDAQ-listed special purpose acquisition company (SPAC), agreed to acquire the portfolio.
The deal was backed by US firms Impact Ag Partners and Riverstone Holdings LLC, with Impact Ag maintaining a local presence in NSW.
However, on April 11, ANSC disclosed to the US Securities and Exchange Commission that the agreement had been ‘mutually terminated.’ While no specific reason was given, ANSC had previously warned of risks tied to volatile equity markets and the complexities of cross-border transactions.
These included concerns over tariffs, currency fluctuations, and political relations—all of which could impact agricultural investments outside the US.
The relisting of the AFA portfolio will be handled by Australian advisory firm Bell Potter. Sources suggest the owners still prefer to sell the business in its entirety, rather than break it up into individual properties. Previous interested parties are expected to be contacted.
Meanwhile, ANSC faces a November 13 deadline to complete a new business combination or risk liquidation. The company has expressed continued interest in agriculture, particularly in ventures tied to decarbonisation and natural capital markets.
AFA, established in 1993, holds a significant livestock capacity and diversified cropping operation, including irrigated cotton, rice, wheat, and more. It also owns two of Australia’s most prestigious merino sheep studs and the Conargo feedlot, licensed for 12,000 cattle.
